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it ought to be about reducing the deficit and the debt and what they are essentially suggesting is we want new taxes, we want higher taxes on people in this country to pay for new spending. >> senator, senator mcconnell has spoken a couple times with the vpz. we have seen in the past that the two of them have been able to come up with bipartisan deals to get through congress on taxes and other things. did he give you an indication in the meeting you just had with rank and file republicans that might be an avenue of success? >> there -- those conversations and discussions continue. and we remain hopeful that that will get a breakthrough. on veryiously, what had happened here between the two leaders in the senate had broken down because the senate democrats failed to come forward with a counteroffer to the proposal republicans made last night. so hopefully, the discussions between the vice president and senator mcconnell will get us back on track, hopefully get a breakthrough and something we can vote on, hopefully today or tomorrow that will avert what we believe will be an economic di
it ought to be about reducing the deficit and the debt and what they are essentially suggesting is we want new taxes, we want higher taxes on people in this country to pay for new spending. >> senator, senator mcconnell has spoken a couple times with the vpz. we have seen in the past that the two of them have been able to come up with bipartisan deals to get through congress on taxes and other things. did he give you an indication in the meeting you just had with rank and file republicans...
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this started out as a discussion about cutting the debt, cutting the deficit and now what's going to happen is th smallest plans on the table are going to-- are not really going to cut the deficit in the long run and don't have major spending cuts and i noticed at one point when he was asked about the sequester, not just the tax side, but the automatic spending cuts about to kick in. he said if we raise revenue by the wealthy paying more, that would be sufficient to turn off this request or what's called the automatic spending cuts and that's what republicans have been suggesting if he raises more revenue raising taxes on the rich, he's not going to put it towards the deficit, but the president kind of suggested that today. >> and a question from the beginning and it's your segment, go ahead. >> i've been on the show for ten seconds, by first time on the "the five", you've interrupted me and contradicted me. >> there will be plenty more time for that, and welcome to "the five", and bob beckel. >> can i ask my question of ed. because ed, you mentioned that i had experience in dealing
this started out as a discussion about cutting the debt, cutting the deficit and now what's going to happen is th smallest plans on the table are going to-- are not really going to cut the deficit in the long run and don't have major spending cuts and i noticed at one point when he was asked about the sequester, not just the tax side, but the automatic spending cuts about to kick in. he said if we raise revenue by the wealthy paying more, that would be sufficient to turn off this request or...
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we still have a trillion-dollar deficit. we've got a lot of work to do. >> we do have a lot of work to do all i ask is we get the work down. stephen moore, always a pleasure to talk to you. we'll be talking a lot in 2013. >>> coming up, the great tax debate that stephen was just talking about. does raising tax on the wealthy really hurt the economy? i'll give you an answer after this. >>> the biggest issue in all the fiscal cliff wrangling is taxes. it's not the most important issue, but it's the central one. grover norquist told you his strong opposition to any tax increases of any sort. many republicans share his view. let's look at the economy. obviously across the board tax increases would hurt the economy. but what will the real economic reaction be to small tax increases on the wealthiest americans? now, annie lowrie of the "new york times" is still with us. i always have to make sure my viewers understand i am not advocating for tax increases on the rich. i want to explain what could happen. i want to bring in jean za
we still have a trillion-dollar deficit. we've got a lot of work to do. >> we do have a lot of work to do all i ask is we get the work down. stephen moore, always a pleasure to talk to you. we'll be talking a lot in 2013. >>> coming up, the great tax debate that stephen was just talking about. does raising tax on the wealthy really hurt the economy? i'll give you an answer after this. >>> the biggest issue in all the fiscal cliff wrangling is taxes. it's not the most...
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it's trying to cut the deficit. >> right, the cuts that everyone is talking about that are in the sequester, those have already been decided and those are in the bank, but as you lk to change current law, the tax cuts expire tomorrow. to replace a bunch of them, to find new revenue and then not continue to cut does not get us out of our hole. so that's the problem. is we're looking at a very small band aid that doesn't get us through the next hurdlhurdle. it keeps us as a fiscal precipice that we've been trying to get out of for 17 months. >> you heard the words used by mitch mcconnell and harry reid, do you see this as a breakdown? or is it just more brinksmanship? >> as you know, even the most distant viewer observer far away from washington would know that these are never resolved before the absolute last-minute. so to get anything resolved today would be surprising. i think people are pushing on both sides of the bargaining table. asking for a little more, a little more. there's going to have to be more budgeting. but it is a good sign as was mentioned before. that the vice president is
it's trying to cut the deficit. >> right, the cuts that everyone is talking about that are in the sequester, those have already been decided and those are in the bank, but as you lk to change current law, the tax cuts expire tomorrow. to replace a bunch of them, to find new revenue and then not continue to cut does not get us out of our hole. so that's the problem. is we're looking at a very small band aid that doesn't get us through the next hurdlhurdle. it keeps us as a fiscal precipice...
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Jan 1, 2013
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maybe there's a chance to get our deficit and debt in line. the downside, we're going to be playing with fire again walking right up by the edge of the cliff. >> the tax rate and how much you tax, that was actually never really a grand bargain kind of discussion. that was oh, guys, you say 3, we say 4, whatever. the real challenge is all of the low hanging fruit for cutting spending is gone. you know, mitt romney talked about big bird and pbs during the debate and people laughed. it wasn't that laughable. it's one of the bigger things left you can cut. you can cut amtrak. there aren't a lot of things that are billions of dollars in the budget you can cut. you need to cut things that hurt, that people care about. >> the deal with the sequester cuts was half out of defense, half out of discretionary spending. that's where entitlement reform stands. there are ways to cut what the president calls accurately bending the long term cost curve. you're not cutting costs in a way that can reduce economic growth immediately, but you reduce the long term
maybe there's a chance to get our deficit and debt in line. the downside, we're going to be playing with fire again walking right up by the edge of the cliff. >> the tax rate and how much you tax, that was actually never really a grand bargain kind of discussion. that was oh, guys, you say 3, we say 4, whatever. the real challenge is all of the low hanging fruit for cutting spending is gone. you know, mitt romney talked about big bird and pbs during the debate and people laughed. it...
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as a former governor, we don't operate with big deficits. you can't do that and we're in trouble in this country financially. the long term and in the short term, yes, we'll have a recession. it won't be a bad one but it will be one and nobody wants a recession. in the long term i think wall street goes crazy and you will see 15,000, 17,000 in the dow because finally somebody has done something serious about the deficit. i don't believe they will if they come to an agreement. >> you know, governor rendell, i want to know if you agree with governor dean. part of the message, one of the things that strikes me, the message for so long has been we can't go over the cliff, we can't go over the cliff. here are all the things that will happen to individual americans if we go over the cliff. there's a lot of anxiety out there. we've been hearing about that, we've seen the markets up and down. to some degree, i understand the political arguments but in terms of the argument of the stability of the country and our economy, do you agree with governor d
as a former governor, we don't operate with big deficits. you can't do that and we're in trouble in this country financially. the long term and in the short term, yes, we'll have a recession. it won't be a bad one but it will be one and nobody wants a recession. in the long term i think wall street goes crazy and you will see 15,000, 17,000 in the dow because finally somebody has done something serious about the deficit. i don't believe they will if they come to an agreement. >> you know,...
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and this was all supposed to be an exercise in bringing down our deficit and our long-term debt and where we are right now, it doesn't appear that we are getting that done and even more importantly, it appears that republicans are still trying to protect the tippy top as opposed to looking after the greater good of the economy and middle class families. >> as far as you-all were told by the democratic leader, where do you think stands -- things stand right now? >> i think that there is a difference in terms of what we think the rates should be for -- and at what point there should be a tax cut and at what point there should be a little revenue that we should collect. there is a difference there. there was a difference about whether or not we should be looking at the social security issue in this discussion. my understanding now the republicans have backed off now, correct, and we are looking at whether or not we are going to end up with deficit and debt reduction and whether or not the changes the republicans are insisting upon are going to comes on the backs of the middle class. >>
and this was all supposed to be an exercise in bringing down our deficit and our long-term debt and where we are right now, it doesn't appear that we are getting that done and even more importantly, it appears that republicans are still trying to protect the tippy top as opposed to looking after the greater good of the economy and middle class families. >> as far as you-all were told by the democratic leader, where do you think stands -- things stand right now? >> i think that there...
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the deficit and the debt and that is happening today to put a patch on not going over the cliff. there has to be new revenues and some entitlement reform, and cpi is the most painless way to do it. and the president offered it in a deal as recently as a week or two ago, and spending cuts, but right now, it is not a grand bargain, because we have the debt ceiling hanging out in two months. this is an attempt to avoid political pain and going over the cliff and we can't get an agreement on a patch with less than 36 hours to go. >> and don, this is the problem, something is the going to hurt. we can't get out with no pain, and we have all sorts of things and nobody wants to pay for it, don. >> you two are fired up, too. and the people at home are too, right. >> and 516 days since we knew that the deadline would come. >> and right at the deadline, and they are going home. >> right. and we are not. >> we are not. we will be here until who knows. okay. a stalemate or breakthrough? with hours to go, lawmakers are searching for a compromise. what are the chances of reaching a deal in was
the deficit and the debt and that is happening today to put a patch on not going over the cliff. there has to be new revenues and some entitlement reform, and cpi is the most painless way to do it. and the president offered it in a deal as recently as a week or two ago, and spending cuts, but right now, it is not a grand bargain, because we have the debt ceiling hanging out in two months. this is an attempt to avoid political pain and going over the cliff and we can't get an agreement on a...
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got a debt and deficit issue, debt-to-gdp issue way too high, approaching european levels, and we've got to solve it. >> such a pity that is it has to go down to the weather. >> my pleasure. >> the market is senting a happy new year. but now it's down just 16 points. >> feels like we're on thin as i aid with some so are you pouring your money into seconds sis no way. outdorg kay bailey hutchison is with us. kwoind out if she thinks there's room for a deal after the house reconvenes on sunday. stay tuned. [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. >>> and there's your green, the doug, s&p and even the s&p are now all slightly in the green now. what happened here as, of course, the dow was down earlier today by nearly 150 points
got a debt and deficit issue, debt-to-gdp issue way too high, approaching european levels, and we've got to solve it. >> such a pity that is it has to go down to the weather. >> my pleasure. >> the market is senting a happy new year. but now it's down just 16 points. >> feels like we're on thin as i aid with some so are you pouring your money into seconds sis no way. outdorg kay bailey hutchison is with us. kwoind out if she thinks there's room for a deal after the house...
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if republicans think i will finish the job of deficit reduction, that's not how it's going to work. in the responsible way. they will reiterate that. it has to be balanced. >> there's a lot of criticism for how the president has been handling this in the last two days some republicans are ridiculing republicans and suggesting that was not conducive to negotiations. can you understand why people feel that way? >> i don't understand that. i think they are wrong. the president laid down the marker and indicated what was in it this bill. he also indicated what's ahead e. and he acknowledged that we have work to do ahead. it has to be done in a balanced and responsible way. there will be to be additional measures. i think that's important. we think the president will lead to think he's spiking the football when he's trying to get everything moving. i think that's a mistake for the republicans to say that. >> i'm not going to suggest that you know what the other 434 members of your house is going to do. never until the vote is done. vice president biden just said that yesterday. but i wan
if republicans think i will finish the job of deficit reduction, that's not how it's going to work. in the responsible way. they will reiterate that. it has to be balanced. >> there's a lot of criticism for how the president has been handling this in the last two days some republicans are ridiculing republicans and suggesting that was not conducive to negotiations. can you understand why people feel that way? >> i don't understand that. i think they are wrong. the president laid...
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separately is how do we bring down our deficit? do we attack social security entitlements, medicare, medicaid and that's this ideological struggle we're seeing between democrats and republicans that will continue in a series of skirmishes probably over the debt ceiling come february and ongoing until they finally have it out and resolve this for the long term. >> i think the white house's view in political terms is that how he handles himself on this sets the terms of engagement for those subsequent fights. again, a few weeks ago, when i was talking to people at the white house about how they were going to strategize this, they said look, this is a re-set moment and we've got to re-set sort of the balance of power from the 2011 talks. >> i think it's worth emphasizing on the numbers you mentioned the public overwhelming supports raises faxes on the wealthy but on the spending cuts they oppose cutting those programs in large numbers. when you get specific about that, don't cut that, don't cut that. >> hands off medicare. >> the pres
separately is how do we bring down our deficit? do we attack social security entitlements, medicare, medicaid and that's this ideological struggle we're seeing between democrats and republicans that will continue in a series of skirmishes probably over the debt ceiling come february and ongoing until they finally have it out and resolve this for the long term. >> i think the white house's view in political terms is that how he handles himself on this sets the terms of engagement for those...
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had to be a paydown on $24 billion of the deficit. we'll have two months to argue out the debt ceiling and the sequester. that was a bright line the president laid out to vice president biden and the staff, said that had to be in the deal, or no deal. >> might be too early, too soon, any read out, any sense of how the meeting's gone between the vice president and the house democrats or we're still working on that? >> reporter: i am not getting any -- any read-out yet because i think it's ongoing. but i will tell you that there is -- even going into it -- a sense of optimism here. the staffers who were working well past 2:00 a.m. last night still have not booked their vacation -- well, they have not left on vacation but i think they're approaching the point where they might feel comfortable booking their vacation travel for a few days. you get the sense they think this is going to wrap up. >> strange how we get our information. we have to look at people's travel and vacation plans. but, yes, it could give us an inkling we're getting cl
had to be a paydown on $24 billion of the deficit. we'll have two months to argue out the debt ceiling and the sequester. that was a bright line the president laid out to vice president biden and the staff, said that had to be in the deal, or no deal. >> might be too early, too soon, any read out, any sense of how the meeting's gone between the vice president and the house democrats or we're still working on that? >> reporter: i am not getting any -- any read-out yet because i think...
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that would help the federal government in terms of dealing with the deficit, but nonetheless, it still won't be enough, but it will be a start in that direction. that's the current cutoff, but we don't have that deal yet. absent that deal and as long as the clock keeps ticking, all of this is on the table for all of us. one more thing i should mention, bear in mind this past year, all of us have enjoyed a payroll tax vacation. payroll taxes were reduced across the country to help people deal with this bad economy right now. that's ending. there's no sign that's not going to end. everyone is going to pay a little more anyway. what we're worried about is this extra level on top. that is what many volters are paying attention to and that is the real bear in the woods that has democrats and republicans both worried about these negotiations. >> the clock, as you point out, is ticking, ticking, ticking right now. tom, thank you. >>> what's at stake for the millions of americans already out of a job once the country goes over the fiscal cliff? that and much more when our special coverage cont
that would help the federal government in terms of dealing with the deficit, but nonetheless, it still won't be enough, but it will be a start in that direction. that's the current cutoff, but we don't have that deal yet. absent that deal and as long as the clock keeps ticking, all of this is on the table for all of us. one more thing i should mention, bear in mind this past year, all of us have enjoyed a payroll tax vacation. payroll taxes were reduced across the country to help people deal...
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over that i think some of the people who are making more than that can help address the deficit and the debt problem that confronts our country. obviously a necessity put this country on a path. if we're going to do that, everybody has to make a contribution toward that. those who have the most need to make their contributions. so the math has got to work. we're not really dealing with the math at this point in time. we're dealing simply with what are the realities of the ability to get to an agreement and create consensus, which is going to be essential if we don't go over the cliff at midnight tonight. so clearly the administration has been working very hard. i think others have been working hard. hopefully we'll get there. >> i know you're measuring this in hours. in fact, as my colleague points out, 517 days ago is when this was wrought by the bodies trying to fix it. on the senate side, tom harkin made it clear they may try to block that vote over the thing you're talking about. i want to listen to what he said on the floor just moments ago. >> if we're going to have some kind of a
over that i think some of the people who are making more than that can help address the deficit and the debt problem that confronts our country. obviously a necessity put this country on a path. if we're going to do that, everybody has to make a contribution toward that. those who have the most need to make their contributions. so the math has got to work. we're not really dealing with the math at this point in time. we're dealing simply with what are the realities of the ability to get to an...
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the deficit of about $1 trillion that is for fiscal 2013. that assumes that somehow the fiscal cliff doesn't happen and we don't reduce the deficit by $600 billion. national debt, about $16 billion , debt held by the public -- as a percentage it is getting up there. we've had it before. as we talked about two weeks ago it is not so much that the size of the debt it is how fast the debt is growing in comparison to the size of the economy. you don't want to pay off the debt but you want it to fall. host: how did we get to this point? why is the government spending so much and under this president, we've seen the debt go up $1 trillion each year over the last four years. where is it going? guest: there are two main ways to look at it. right now, we're still coming out of this economic crisis. so you have large debts for four years mainly because you have low revenues as people don't have jobs or they are getting paid less. then there has been extra spending programs over the last four years but also, we have this mandatory spending programs tha
the deficit of about $1 trillion that is for fiscal 2013. that assumes that somehow the fiscal cliff doesn't happen and we don't reduce the deficit by $600 billion. national debt, about $16 billion , debt held by the public -- as a percentage it is getting up there. we've had it before. as we talked about two weeks ago it is not so much that the size of the debt it is how fast the debt is growing in comparison to the size of the economy. you don't want to pay off the debt but you want it to...
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. >> what i'm not willing to do is to have the entire burden of deficit reduction rest on the shoulders of seniors making students pay a higher student loan rates, ruining our capacity to invest in things like basic research that help our economy grow. >> in news overseas the bodies of the dead are being carried away in syria today. at least 397 people were killed saturday. that is the deadliest day so far in the 21-month long civil war. another 52 died today. the joint u.n. arab league envoy said the situation is rapidly deteriorating but that a solution is still possible. >>> in massachusetts boston's mayor lifted a snow emergency a little earlier today. more than a foot of snow fell on several towns across that state overnight. crews are clearing tons of snow in the gillette stadium now preparing for the patriots/dolphins game this afternoon. >>> keep it here as the clock ticks to the fiscal cliff. we are live on capitol hill and at the white house. plus we'll be back with a full hour at 2:00 p.m. eastern here in the cnn newsroom. we'll see you then. >>> it was one of the most import
. >> what i'm not willing to do is to have the entire burden of deficit reduction rest on the shoulders of seniors making students pay a higher student loan rates, ruining our capacity to invest in things like basic research that help our economy grow. >> in news overseas the bodies of the dead are being carried away in syria today. at least 397 people were killed saturday. that is the deadliest day so far in the 21-month long civil war. another 52 died today. the joint u.n. arab...
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this time bomb that the congress created was designed to deal with deficit and the debt. we won't get that right now. but we might get a plan to deal with taxes, to avoid the fiscal cliff, that's a win for the economy and the american people. >> john, it is joe johns in washington, d.c. we have heard so much about tax increases and how they're going to handle those and not so much about the spending cuts and my question to you is at the end of the day, are we going to end up essentially with some type of a plan that could add to the federal deficit instead of reduce it? >> you noticed that, huh? sequester hasn't really been the topic of much conversation. look, that is still unclear right now. obviously, again, the point of all of this, the reason that over 500 days ago we set the fiscal cliff with regard to the spending cuts and knew the bush tax cuts were expiring ten years ago on this date, that was an impetus to create bargain to deal with deficit and debt. what seems to be coming together now is largely, as you said, a planned focused on taxes. not just the tough tax
this time bomb that the congress created was designed to deal with deficit and the debt. we won't get that right now. but we might get a plan to deal with taxes, to avoid the fiscal cliff, that's a win for the economy and the american people. >> john, it is joe johns in washington, d.c. we have heard so much about tax increases and how they're going to handle those and not so much about the spending cuts and my question to you is at the end of the day, are we going to end up essentially...
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it was to raise awareness about deficit and debt. >> what was awesome about that >> everything. >> roland is right. there was nothing awesome about that. as a matter of fact, roland is right, john. there's nothing right. nothing. >> john's problem is inside, he's a very old man, too. i mean, it proves old people should really -- really old people should never use social media. >> an old man who is in debt and deficits. >> he's going to do the hammer dance? >> alan sem son impson is one o great public servants who will say or do whatever it takes to get people's attention on issues that really matter. skip and this group that sponsored it is the can kicks back. it's not 200 million views. >> i wish we could see al franken dancing in a unitard to fight violence against women. >> make the cut. >> senator franken. >> >> who picked the list? >> we all did it "outfront." >>> up next, a rust belt bright spot in 2013. we're going to take you there, next. [ male announcer ] rocky had no idea why dawn was gone for so long... ...but he'd wait for her forever, for any reason, and would always be ther
it was to raise awareness about deficit and debt. >> what was awesome about that >> everything. >> roland is right. there was nothing awesome about that. as a matter of fact, roland is right, john. there's nothing right. nothing. >> john's problem is inside, he's a very old man, too. i mean, it proves old people should really -- really old people should never use social media. >> an old man who is in debt and deficits. >> he's going to do the hammer dance?...
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we still have deficits that have to be dealt with. we still have to think about how we put our economy on a long-term trajectory of growth. how we continue to make investments in things like education, things like infrastructure that help our economy grow. keep in mind that the threat of tax hikes going up is only one part of this so-called fiscal cliff that everybody is talking about. what we also have facing us starting tomorrow are automatic spending cuts that are scheduled to go into effect. and keep in mind that some of these spending cuts that congress has said will automatically go into effect have an impact on our defense department, but they also have an impact on things like head start. so there are some programs scheduled to be cut that we're using an ax instead of a scalpel. may not always be the smartest cuts. and so that is a piece of business that still has to be taken care of. and i want to make clear that any agreement we have to deal with these automatic spending cuts that are being threatened for next month, those a
we still have deficits that have to be dealt with. we still have to think about how we put our economy on a long-term trajectory of growth. how we continue to make investments in things like education, things like infrastructure that help our economy grow. keep in mind that the threat of tax hikes going up is only one part of this so-called fiscal cliff that everybody is talking about. what we also have facing us starting tomorrow are automatic spending cuts that are scheduled to go into...
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republicans don't care about deficit reduction. if they had they would have allowed it to take place and reduced the deficit. >> i am always interested in what he has to say. it is interesting, this vote asked, what do conservatives and republicans believe in the house and what do republicans believe? as i have said to you from day one, democrats want the fiscal cliff. howard dean said on your program, it is the best deal that they are going to get. the republicans would never go along with and they are going to get tax raises on rich people. and when we go off the physical cliff congress goes back into session. republicans are blamed for the bad economy and roger is right. the three programs, social security and medicare and medicaid have been untouched. roger, the reason i give this one cheer out of three cheers, i think he is right. the democrats are salivating to demonize and this deal is the best they are going to get. >> in this one, some people say, that the real hidden agenda is to break the pledge on tax cuts and break the
republicans don't care about deficit reduction. if they had they would have allowed it to take place and reduced the deficit. >> i am always interested in what he has to say. it is interesting, this vote asked, what do conservatives and republicans believe in the house and what do republicans believe? as i have said to you from day one, democrats want the fiscal cliff. howard dean said on your program, it is the best deal that they are going to get. the republicans would never go along...
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twice as large as the largest bush deficit. we are spending a trillion more a year than we were five years ago. we have to resolve dhou we continue to spend this money. we can wrap around how we get this spending down no amount of taxation is going to solve the problem. >> why is it there's a reluctance to identify where the spending cuts should go? no one wants to talk about the sacred entitlements but at some point we have to. if we are spending a trillion dollars a year and if the revenues are offset by the spending recommended by the president our grandchildren will be held hostage. >> get everybody back to work. we did not pay for the cost of the war. president bush should have done that. both were declared during his administration. that cost is enormous. huge pay out to health insurance unemployment compensation and so forth because the wholly con me went to pot. of course spending would go up. having responsible legislation is so important. it starts if the congress has been a part of economic growth in this country. hu
twice as large as the largest bush deficit. we are spending a trillion more a year than we were five years ago. we have to resolve dhou we continue to spend this money. we can wrap around how we get this spending down no amount of taxation is going to solve the problem. >> why is it there's a reluctance to identify where the spending cuts should go? no one wants to talk about the sacred entitlements but at some point we have to. if we are spending a trillion dollars a year and if the...
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who should pick up the burden for deficit reduction? working people who have seen their wages go down or the top 2% who have done phenomenally well, while their effective tax rate, as mitt romney reminded us by not releasing his tax returns, is extremely low. so to my mind, what this deficit reduction debate is about is asking the wealthiest people, the large corporations to help us with deficit reduction and give a break for a change to the middle class and working families. >> as you say, one that would mean less money for seniors with the social security adjustment is off the table, are you more optimistic about getting a deal done. >> we still have a long way to go. >> what do you see as the major sticking point? >> one of the sticking pointing, what the republicans want to do is continue the 2010 agreement on lower estate tax rates, which means, chris, $120 billion tax break over a ten-year period for the top 0.2 of 1%. they get $120 billion tax break. and people come forward and say we're very serious about deficit reduction. thir
who should pick up the burden for deficit reduction? working people who have seen their wages go down or the top 2% who have done phenomenally well, while their effective tax rate, as mitt romney reminded us by not releasing his tax returns, is extremely low. so to my mind, what this deficit reduction debate is about is asking the wealthiest people, the large corporations to help us with deficit reduction and give a break for a change to the middle class and working families. >> as you...
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dropping being squeezed every year by my conservative friends on the other side of the aisle, with deficits remaining high, every dollar of sacrifice that the wealthy forego is sacrifice that we will later be asking of real middle-class, modest-income americans. every dollar that the top 2% of taxpayers do not pay under this deal, we will eventually ask folks of modest means to foreg forego -- to forego in social security or medicare or medicaid or head start benefits or other items that benefit the real middle class. i believe it is gravely shortsighted to look at these issues in isolation from each other, especially since the republicans have made crystal clear they intend to seek mandatory spending cuts just two months from now using the debt limit as leverage. so number three, why in this deal do we make the tax benefits for the rich permanent while the progressive tax benefits we put in place in 2009 to help people of modest means, why are those temporary? for example, the estate taxes that benefit the wealthiest are made permanent. the earned income tax credit that affects the lower i
dropping being squeezed every year by my conservative friends on the other side of the aisle, with deficits remaining high, every dollar of sacrifice that the wealthy forego is sacrifice that we will later be asking of real middle-class, modest-income americans. every dollar that the top 2% of taxpayers do not pay under this deal, we will eventually ask folks of modest means to foreg forego -- to forego in social security or medicare or medicaid or head start benefits or other items that...
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to do everything we can to prevent higher income individuals to pay a little bit more to reduce our deficit, and that's what's been going on for the last six months. that's what the conversation in the election was all about, but here we are. >> can you walk us through this? you said the chain cpi. i was told it was off the table. is it still on the table? >> earlier today i would have said the odds of an agreement was very low because mitch mcconnell, the republican leader, had put that into the talks. that apparently is no longer part of it. >> walk us through this, what's happening right now. are we at 250 or 400? what are we doing with unemployment? what's going on? >> well, again, there's -- no one has agreed to any particular threshold, whether it's 250, whether it's 400. unemployment insurance is something that is the an absolute requirement. the president has said and i totally agree that it's important that folks who are out of work through no fault of their own continue to get help. it's not just good for their families but the whole neighborhood and the local economy. one of the
to do everything we can to prevent higher income individuals to pay a little bit more to reduce our deficit, and that's what's been going on for the last six months. that's what the conversation in the election was all about, but here we are. >> can you walk us through this? you said the chain cpi. i was told it was off the table. is it still on the table? >> earlier today i would have said the odds of an agreement was very low because mitch mcconnell, the republican leader, had put...
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so to delay that has a cost that further adds to the deficit. so they have been trying to find ways to offset that cost. to bring in new revenue through these new taxes, to protect the current tax rates for the majority of americans. so anyone who earns less than 400,000 dollars as an individual will have the same tax rates as they do now. other sorts of tax provisions like the 2% payroll tax will stay in effect. and for those people who have been out of work the longest and have been depending on unemployment benefits, those will continue as a part of this deal. it is complicated. it has very significant impact on the economy, on people's pocketbooks, and there has been sharp political divide for a very long time. that's the subject of the campaign on many levels, it will be a subject of campaigns for many of these members of congress in the future when they are up for reelection. but this represents a significant breakthrough after so much difficulty. much of the credit will probably go to mitch mcconnell and vice president joe biden. and alon
so to delay that has a cost that further adds to the deficit. so they have been trying to find ways to offset that cost. to bring in new revenue through these new taxes, to protect the current tax rates for the majority of americans. so anyone who earns less than 400,000 dollars as an individual will have the same tax rates as they do now. other sorts of tax provisions like the 2% payroll tax will stay in effect. and for those people who have been out of work the longest and have been depending...
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a dog to be reducing the deficit and debt. they say they want higher taxes on people in this country to pay for new spending. >> you have spoken a few times with the prize -- the vice president and it seems they have been able to come up with bipartisan deals. did he give you an indication that you just had with fellow republicans that it may be an avenue of success? >> there were conversations and discussions between us and we remain hopeful that it will be a breakthrough. obviously, what happened here between the two leaders in the senate had broken down because they had come forward with a counter offer to what republicans said last night. hopefully the discussions between the vice-president and senator mcconnell will get us back on track and we will have a breakthrough and something we can vote on today or tomorrow to avert what we all believe would be an economic disaster. >> harry reid is as if you cannot come up with something by tonight that he will push a scaled-down version of what the president asked for, the tax cu
a dog to be reducing the deficit and debt. they say they want higher taxes on people in this country to pay for new spending. >> you have spoken a few times with the prize -- the vice president and it seems they have been able to come up with bipartisan deals. did he give you an indication that you just had with fellow republicans that it may be an avenue of success? >> there were conversations and discussions between us and we remain hopeful that it will be a breakthrough....
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we still have deficits that have to be dealt with. we're still going to have to think about how we put our economy on a long-term trajectory of growth and how we continue to make investments in things like education, things like infrastructure that help our economy grow. keep in mind that the threat of tax hikes going up is only one part of this so-called fiscal cliff that everybody has been talking about. what we also have facing us starting tomorrow are automatic spending cuts that are scheduled to go into effect. keep in mind that some of these spending cuts that congress has said will automatically go into effect have an impact on our defense department, but they also have an impact on things like head start and so there are some programs that are scheduled to be cut that we're using an ax instead ax instead of a scalpel. may not always be the smartest cuts and so that is a piece of business that still has to be taken care of. and i want to make clear that any agreement we have to deal with these automatic spending cuts that are b
we still have deficits that have to be dealt with. we're still going to have to think about how we put our economy on a long-term trajectory of growth and how we continue to make investments in things like education, things like infrastructure that help our economy grow. keep in mind that the threat of tax hikes going up is only one part of this so-called fiscal cliff that everybody has been talking about. what we also have facing us starting tomorrow are automatic spending cuts that are...
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they want them to carry the burden of reducing the deficit and refuse to ask higher income individuals to pitch in to fully share responsibility. and that is exactly what is happening. it is important to know that republicans are now demanding that the wealthiest of the very wealthiest estates in this country get a sweetheart deal on estate taxes which would help 7,200 families in the country next year get an average tax break of $1.2 million. and they are holding up tax relief for everybody else in the country in order to get this demand met for the very wealthiest estates. this isn't even the top 1%. this is a fraction of 1%. while they want to give those folks a big break they want folks on social security to pay more. and so this is a major setback. it is interesting to hear mitch mcconnell talking about his good faith efforts. he knows that he just threw a monkey wrench into the negotiations y. think he is also doing it to protect speaker boehner and the republicans and the house because he doesn't want to send them a deal that he knows they are going to vote down. >> let's talk a
they want them to carry the burden of reducing the deficit and refuse to ask higher income individuals to pitch in to fully share responsibility. and that is exactly what is happening. it is important to know that republicans are now demanding that the wealthiest of the very wealthiest estates in this country get a sweetheart deal on estate taxes which would help 7,200 families in the country next year get an average tax break of $1.2 million. and they are holding up tax relief for everybody...
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explodes the deficit. hurts middle class employment. none has anything to do with the problem that we have which is number one in revenue we are spending too much and number two job creation. none of this helps either one of those things joe trippi and you know that is true. >> i don't know that is true and we won't agree about that. we will agree about one thing. going over the cliff will be far worse than what the president has put forward as a solution. >> sean: no, it is not. >> yes, it will. why don't we go over the cliff and get it over with. that makes sense to me, sean. >> sean: i say from the beginning he wanted to go over the cliff. he gets to blame republicans, tax everybody and gets defense cuts he never dreamed of through se see questions traition. we still have trillion dollars deficits. >> we got to be honest here. >> let's be honest both parties have been lying to the american people about that for years for decades sean. it is not a dam problem. >> sean: and no president has spent like this reckless spender. billy cunni
explodes the deficit. hurts middle class employment. none has anything to do with the problem that we have which is number one in revenue we are spending too much and number two job creation. none of this helps either one of those things joe trippi and you know that is true. >> i don't know that is true and we won't agree about that. we will agree about one thing. going over the cliff will be far worse than what the president has put forward as a solution. >> sean: no, it is not....
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that's a drop in the bucket to our deficit problems. so the real issue is spending and we got to deal with it. >> my guess is you're hearing the same thing that i hear from people. whether they're friends or family or they're people that i just -- that see me in starbucks. that is, why can't they get this done? i can't tell you the number of people who have said to me if i had a deadline at work and i just ignored it, i'd lose my job. this was yesterday on the senate floor. >> something has gone terribly wrong when the biggest threat to our american economy is our american congress. >> how did we get to this, congressman? he right? >> yes, he is. really it's the inability of congress to control spending. that is why we're in this pickle right now. we're spending $1.2 trillion more than we're taking in every year. and so he is completely right. i think people are right to see congress as dysfunctional. that's why we've got to deal with this today or tomorrow or the next day in a way that fixes this long term, not just gets us out of the
that's a drop in the bucket to our deficit problems. so the real issue is spending and we got to deal with it. >> my guess is you're hearing the same thing that i hear from people. whether they're friends or family or they're people that i just -- that see me in starbucks. that is, why can't they get this done? i can't tell you the number of people who have said to me if i had a deadline at work and i just ignored it, i'd lose my job. this was yesterday on the senate floor. >>...
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. >> an old man who is in debt and deficits. >> he's going to do the hammer dance? >> he's one of these great public servant who will say or do whatever it takes to get people's attention on issues that really matter. and this group that sponsored it is the can kicks back. it's not 200 million views. >> i wish we could see al franken dancing in a unitard to fight violence against women. >> make the cut. >> who picked the list? >> we all did it "outfront." >>> up next, a rust belt bright spot in 2013. we're going to take you there, next. last chance to get the best deals of the year on america's freshest lineup. hurry in for the great mileage. hurry in the latest technology. the clock is ticking. so hurry to the final 100 hours of ford's year end celebration. before everything's gone. and one more thing...hurry. get a focus with 2000 cash plus 500 year end bonus cash with no charge sync and sound during the final hundred hours of the ford year end celebration. only at your local ford dealer. >>> well, washington's division and dysfunction threatened our economic reco
. >> an old man who is in debt and deficits. >> he's going to do the hammer dance? >> he's one of these great public servant who will say or do whatever it takes to get people's attention on issues that really matter. and this group that sponsored it is the can kicks back. it's not 200 million views. >> i wish we could see al franken dancing in a unitard to fight violence against women. >> make the cut. >> who picked the list? >> we all did it...
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tom: will that tax solve the deficit spending? >> it will if you include 2%, 250,000 for couples, 200,000 for individuals and above. you start taxing capital gains and dividends, reinstate that and get rid of $109 billion in corporate taxes every year. you're looking it over $300 billion. ." tom: upside-down by trillion closet -- a trillion dollars. not even close to fixing the deficit spending. still adding to the debt under republican and democrat programs >> this kind of class warfare rhetoric is serving a purpose. the reality is the proposed tax increases will fund the federal government for approximately eight days. it might make people feel good and that's a reason to pass it. frankly, i don't hear any politicians talking reality but the fiscal problems facing the country which is democrat or republican. tom: do you have any hope that the blame game can be put aside so they can get some work done? in the private sector these people would be fired. >> absolutely. this is a do nothing congress, the least active in four years w
tom: will that tax solve the deficit spending? >> it will if you include 2%, 250,000 for couples, 200,000 for individuals and above. you start taxing capital gains and dividends, reinstate that and get rid of $109 billion in corporate taxes every year. you're looking it over $300 billion. ." tom: upside-down by trillion closet -- a trillion dollars. not even close to fixing the deficit spending. still adding to the debt under republican and democrat programs >> this kind of...
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debt or the deficit, and they're unwilling to do anything. dan is completely wrong. speaker boehner is not prepared to make a deal. you know, he's not the host of "let's make a deal." he's completely incapable of making a deal. and look, i think we're headed over the fiscal cliff because, again, i don't think the republican party is serious about playing an important role in governing this country. >> now, i don't necessarily disagree with you, but let me push back a little bit, and then i'll let dan jump in. >> sure. >> look, the argument i'm hearing -- and i don't know what cuts the president is offering to the republicans -- but why doesn't he offer more? why doesn't he give them -- i mean, anything more that he offers would be better than going over the fiscal cliff. why can't we get to something? why can't he give enough significant cuts that would make some of these republicans in districts that will really have problems when they go back to win re-election, if they raise taxes, give them some sort of incentive. give them some serious c
debt or the deficit, and they're unwilling to do anything. dan is completely wrong. speaker boehner is not prepared to make a deal. you know, he's not the host of "let's make a deal." he's completely incapable of making a deal. and look, i think we're headed over the fiscal cliff because, again, i don't think the republican party is serious about playing an important role in governing this country. >> now, i don't necessarily disagree with you, but let me push back a little bit,...
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the deficit, like how much debt or adding. over a trillion. just when you're. federal government running a a tab of a trillion. we talk about this number of the time. let's get this zero's again. a very big number. tough to get your arms around these numbers. when you see it on a piece of paper it's easier. i thought it would be even easier if we thought about one american household. what if each of those numbers translate it into one family. if you ran the household like the federal government here is what you would be looking at. your family income, 24,400. your spending, 305,400. look at this. what's going on? you can't do this. if you were spending 35,000 only had 24,000 coming in, that's a nightmare. the new debt would be 10,900. it's a nightmare. so let's talk about your total credit card debt. if you were on par with the federal government your total debt would be $163,000. you're not even earning 25,000. you would be in huge trouble. you would be insolvent. i would call you a deadbeat. of course you're too smart to do something this stupid. capitol hill
the deficit, like how much debt or adding. over a trillion. just when you're. federal government running a a tab of a trillion. we talk about this number of the time. let's get this zero's again. a very big number. tough to get your arms around these numbers. when you see it on a piece of paper it's easier. i thought it would be even easier if we thought about one american household. what if each of those numbers translate it into one family. if you ran the household like the federal government...
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not even close fixing the deficit spending. still adding to the debt under republican and democrat programs >> this kind of class warfare rhetoric is serving a purpose. the reality is the proposed tax increases will fund the federal government for approximately eight days. it might make people feel good and that's a reason to pass it. frankly, i don't hear any politicians talking reality but the fiscal problems facing the country which is democrat or republican. tom: do you have any hope that the blame game can be put aside so they can get some work done? in the private sector these people would be fired. >> absolutely. this is a do nothing congress, the least active in fur years when it comes to policy making, and the reason we are here is that the delay decisions for the past two years. i do think that something will happen because if it doesn't the consequences will be so severe in the next year again over 9 percent unemployment and a significant slowdown in an already slow economy. tom: but the blame game, who is going to g
not even close fixing the deficit spending. still adding to the debt under republican and democrat programs >> this kind of class warfare rhetoric is serving a purpose. the reality is the proposed tax increases will fund the federal government for approximately eight days. it might make people feel good and that's a reason to pass it. frankly, i don't hear any politicians talking reality but the fiscal problems facing the country which is democrat or republican. tom: do you have any hope...
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there is no sense that deficit will hammer us right now. >> i have blajerred on too much. my fault. thank you very much sfls let's hit on as many as we can. jimmy p. joining us. and former governor ed rendell. i think steve brought up an important point, governor, which is this, what do you believe is the ultimate goal. adding 50 $60 bucks to benefits will help them live a more comfortable life. will it help the growth goals of the united states? >> i think the greater growth goals can only be accomplished -- look, there isn't going to do anything to get our debt under control. we we have to go back to the drawing board to deal with entitlement reform, military spending cuts and revenue. it is reported this produces 600 billion in revenue, that's not nearly enough. we have to go back tlt drawing board an and make tough decisions. only taking care of the debt will causey think the chain reaction that will cause markes to the explode. economy to grow bp that's more important than any of the little niches you are talking about. >> when will that time kuk? when will we have to go back t
there is no sense that deficit will hammer us right now. >> i have blajerred on too much. my fault. thank you very much sfls let's hit on as many as we can. jimmy p. joining us. and former governor ed rendell. i think steve brought up an important point, governor, which is this, what do you believe is the ultimate goal. adding 50 $60 bucks to benefits will help them live a more comfortable life. will it help the growth goals of the united states? >> i think the greater growth goals...
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the deficit has been improving. the federal deficit has improved over the last couple quarters. >> so is it the case that perhaps because the economy has done better that perhaps that would save us from a credit rating downgrade even if we go over the cliff? >> i don't expect another downgrade from the other rating firms. the next step would be putting it on negative watch. all three major credit rating firms have a negative outlook. the next step is a negative watch and then a downgrade. we don't expect that to happen. especially if the debt ceiling is raised, which is likely, not many people have been speaking about it, but that's likely to come out over the next couple of weeks. then there's the entitlement reform, which probably is more importantly actually than the deficit talks. >> so in terms of entitlement reform, if we have a mini deal, so to speak, where certain tax rates are maintained for the middle class, let's say, but the amount of time in which entitlement reform can be worked out is an extended time
the deficit has been improving. the federal deficit has improved over the last couple quarters. >> so is it the case that perhaps because the economy has done better that perhaps that would save us from a credit rating downgrade even if we go over the cliff? >> i don't expect another downgrade from the other rating firms. the next step would be putting it on negative watch. all three major credit rating firms have a negative outlook. the next step is a negative watch and then a...
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a plan that would simplify the tax code, shrink the deficit, protect the taxpayers, and grow the economy. but democrats consistently rejected those offers. the president chose, instead, to spend his time on the campaign trail. this was even after he got re-elected. and congressional democrats sat on their hands. now, republicans have bent over backwards. we stepped way, way out of our comfort zone. we wanted an agreement. but we had no takers. the phone never rang and so now here we are five days from the new year and we might finally start talking. democrats have had an entire year to put forward a balanced bipartisan proposal. and if they had something to fit the bill, i'm sure the majority leader would have been able to deliver the votes the president would have needed to pass it here in the senate. and weapon wouldn't be in this
a plan that would simplify the tax code, shrink the deficit, protect the taxpayers, and grow the economy. but democrats consistently rejected those offers. the president chose, instead, to spend his time on the campaign trail. this was even after he got re-elected. and congressional democrats sat on their hands. now, republicans have bent over backwards. we stepped way, way out of our comfort zone. we wanted an agreement. but we had no takers. the phone never rang and so now here we are five...
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and it immediately moved to deficit reduction and how to do it. and that was a very fundamental, important shift in the conversation. >> we have to go, but -- we have to go, but i heard that after the show, sam stein will be on twiner. you can be there, too. >> we can get together. >> we have another important item, though, which is the biggest hurdle arguably to president obama's second term agenda. that's something you're probably never going to hear about, literally. people think of the filibuster as a talk athon to stop action in the senate. but nowadays it has been attacked with a constant extreme of silent filibusters. up next, the talking filibuster ahead live. >>> time for the your business preer oes weeks. amber and mark started north carolina's based footsteps clothing which had a booming christmas themed pajama liven. not wanting to be jump a seasonal line of christmas, they added other opportunities. for more, watch "your business." sunday morning at 7:30 a.m. everyone loves surprise parties. yeah, so last week we had a surprise party
and it immediately moved to deficit reduction and how to do it. and that was a very fundamental, important shift in the conversation. >> we have to go, but -- we have to go, but i heard that after the show, sam stein will be on twiner. you can be there, too. >> we can get together. >> we have another important item, though, which is the biggest hurdle arguably to president obama's second term agenda. that's something you're probably never going to hear about, literally. people...
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makes the deficit worse. the real test will been when they can do their jobs and make the hard choices and confront very dangerous debt levels that we currently have in this country that are part of the reason the economy is not growing. it's those hard choices that will be the real test of bipartisanship and the ability to govern. host: let's share with you yesterday how things unfolded. senator john thune spoke with reporters midday yesterday on capitol hill. [video clip] >> those conversations and discussions continue. we remain hopeful that will get a breakthrough. what happened between the two leaders in the senate had broken down, because the senate democrats failed to come forward with a counteroffer to the proposal republicans made last night. host: a late word from "politico" from republican leader mitch mcconnell. let me read to you a story that he and the vice president engaged in "serious overnight negotiations to avert the fiscal cliff, making major progress to a year-end tax deal, giving seven h
makes the deficit worse. the real test will been when they can do their jobs and make the hard choices and confront very dangerous debt levels that we currently have in this country that are part of the reason the economy is not growing. it's those hard choices that will be the real test of bipartisanship and the ability to govern. host: let's share with you yesterday how things unfolded. senator john thune spoke with reporters midday yesterday on capitol hill. [video clip] >> those...